The last of winter's chill is fading away. In the spirit of spring cleaning, why not extend that fresh start to your finances?
Veetahl Eilat-Raichel, financial entrepreneur and Sorbet CEO, formerly CMO at a major credit card firm, suggests it's the perfect time to detox your credit "wardrobe" and plant seeds for a flourishing financial future. Let's dive into some of Eilat-Raichel's top tips for making your personal finances bloom this season.
1. Reset your budget
First, give your budget a thorough dusting. This isn't just about shaving a few dollars off your grocery bill; it's a holistic reevaluation of your financial flow. Are you subscribing to services you barely use? Now's the time to cut them loose.
Take a magnifying glass to your debt-to-income ratio, too. If your debts are nibbling off more than their fair share of your income, it's time for some strategic planning to get back on track. Think of it as decluttering your financial closet.
2. Assess your credit
In today's economic context, assessing your credit is crucial, especially with U.S. credit card debt reaching all-time highs. Eilat-Raichel's advice highlights the importance of regular credit checks as preventive measures for your financial health. These checks serve as a diagnostic tool, helping you monitor credit utilization and detect early signs of debt.
This proactive step is essential for preventing minor issues from spiraling into significant problems, ensuring that you're aware of your financial standing and actively safeguarding it against potential instability. After learning your credit status, it's vital to take concrete steps toward improving or maintaining your financial health. This includes:
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Devising a targeted repayment strategy for high-interest debts and adjusting your budget to curb future borrowing.
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For those with better credit, options like asking for a credit limit increase from your card issuers can be explored to improve credit scores, albeit cautiously.
These efforts, alongside consistent monitoring of your credit score and reports, not only translate insights from your credit assessment into effective action but also promote a proactive stance in managing and enhancing your financial well-being.
3. Accessing "hidden" money with PTO
Here's a surprising stat: Only 45% of earned PTO days are used by employees. That's thousands of dollars in untapped resources sitting idle. Think of it as the loose change in your couch cushions but on a grander scale. Eilat-Raichel suggests cashing in on this "hidden" money for debt payments or saving for a sunny summer getaway.